Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 

Saudi Arabia has made significant strides in advancing its healthcare sector as part of its broader vision to improve the well-being of its citizens and residents. File
Saudi Arabia has made significant strides in advancing its healthcare sector as part of its broader vision to improve the well-being of its citizens and residents. File
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Updated 02 December 2024
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Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 

Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 

RIYADH: Saudi Arabia is set to open five new hospitals by 2025, adding 963 beds across key provinces as part of a broader SR260 billion ($69.3 billion) budget allocation to the health and social development sector. 

This allocation, which represents the second-largest share of government spending, covers a wide range of initiatives, including increasing bed capacity to 23 beds per 10,000 residents in the targeted provinces, as outlined in the Ministry of Finance’s budget report.

The new facilities, located in Rijal Almaa, Dhahran Al-Janoub, Hail, Makkah, and Riyadh, include a dedicated mental health hospital in the capital. These projects aim to enhance access to care and improve healthcare infrastructure across the Kingdom.  

Other initiatives for 2025 include emergency services, early detection programs, cancer care, and expanded dialysis services, highlighting a comprehensive approach to healthcare that emphasizes prevention, early intervention, and state-of-the-art infrastructure. 

In addition to healthcare, these funds will also support the management of human resources and social services, including social security and welfare. 

They will also extend to the cultural, media, sports, and entertainment sectors, as well as the implementation of the Quality of Life Program. This underscores Saudi Arabia’s holistic approach, recognizing the interconnectedness of health and social development.  

Healthcare advancements 

Saudi Arabia has made significant strides in advancing its healthcare sector as part of its broader vision to improve the well-being of its citizens and residents. 

Over the past decade, the Kingdom has invested heavily in modernizing healthcare infrastructure, expanding medical services, and improving access to quality care nationwide.  

With initiatives like Vision 2030, which outline ambitious goals to diversify the economy and enhance public services, the health sector has become a key area of focus. 

The government has prioritized expanding health coverage, upgrading hospitals and clinics, and implementing advanced technologies such as electronic health records and telemedicine services. 

Additionally, Saudi Arabia places strong emphasis on preventive healthcare, early diagnosis, and specialized treatment programs, all aimed at reducing the disease burden and improving the quality of life. 

Key investments 

The ministry’s report indicated that the new hospitals will be outfitted with state-of-the-art medical equipment, and skilled healthcare professionals will be employed to address the health needs of the population and enhance the quality of care.  

To bolster emergency medical services, Saudi Arabia plans to deploy 568 vehicles, including ambulances, electric vehicles, and amphibious units.  

These vehicles will play a crucial role in transporting the injured and medical supplies, enhancing the overall responsiveness of healthcare services, especially in remote areas and during emergencies. This extensive fleet will ensure timely medical attention and improve access to healthcare across all regions, regardless of geographic challenges. 

Health innovations 

The health sector will also prioritize early screening for newborns and young children in 2025, aiming to reduce disability and enhance overall quality of life. 

This includes the implementation of newborn screening programs to detect hearing impairments and genetic disorders. 

A comprehensive database will be created, linking both public and private sectors to ensure early diagnosis and intervention. 

Additionally, preschool hearing screenings will be integrated with the Noor system to improve educational outcomes for children, further supporting the early identification of health issues that could impact development. 

In an effort to reduce the incidence of cervical cancer, the Kingdom will increase HPV vaccination coverage for girls, targeting a 90 percent vaccination rate.  

The program will provide vaccines for girls in their first year of intermediate school and offer early detection services for women aged 30 and older. Positive cases will be referred to early screening programs for cervical cancer, aiming to prevent the spread of HPV and improve overall public health by detecting and addressing the virus early. 

The Kingdom is also expanding its cancer care services by implementing a modern care model across three new oncology centers. 

This includes expanding early cancer detection capabilities and providing state-of-the-art diagnostic equipment to improve the accuracy and speed of diagnoses.  

Similarly, dialysis services at Huraymila and Jazan General Hospitals will undergo significant expansion, with a 200 percent increase in capacity at each facility. These centers will receive substantial funding — SR10 million for Huraymila and SR30 million for Jazan — to ensure advanced care and accommodate more patients in need of dialysis. 

In parallel with these service expansions, the Kingdom is enhancing its medical evacuation capabilities by developing and activating medical evacuation centers, command and control hubs, and advanced ambulance services across the country. 

Notably, the National Health Emergency Operations Center has earned recognition from the World Health Organization for its efficiency and preparedness, positioning Saudi Arabia as a leader in healthcare crisis management and emergency response. 

Healthcare achievements 

The Ministry of Finance budget report highlighted the issuance of 113 million electronic prescriptions through the Wasfaty service, resulting in SR1.3 billion in savings and reducing costs by SR2.4 billion. 

The Wasfaty service is an electronic prescription platform introduced by the Saudi Ministry of Health. It allows doctors to prescribe medications electronically, replacing traditional paper prescriptions. 

This service is part of Saudi Arabia’s broader efforts to digitize healthcare services and improve efficiency. Through this platform, prescriptions can be directly sent to pharmacies, streamlining the process for both patients and healthcare providers. It also enhances medication tracking, reduces prescription errors, and helps manage healthcare costs more effectively. 

Emergency services have seen a 20 percent improvement in response time, enhancing life-saving efforts with more efficient ambulance and air transport services. 

Health coverage has expanded, with 12.5 million beneficiaries and a reduction in patient transfers outside local areas. 

Operational efficiency has been boosted, leading to a 27 percent increase in scheduled surgeries and a 91 percent improvement in emergency service access within four hours.  

The localization of specialized tests has grown by 13.1 percent, reducing reliance on external laboratories and cutting long-term costs. 

Dental services have also flourished, with a 137 percent increase in clinic capacity, a 200 percent rise in appointments, and a 250 percent growth in primary healthcare services.  

Additionally, the provision of advanced ambulances has improved services for challenging terrains and mass casualty incidents. The sector has also achieved 17 international accreditations, raising the health compliance rate to 84 percent across 252 facilities, solidifying its commitment to global standards. 

Digital advancements 

Investment in digital healthcare systems is proving beneficial in improving performance and health outcomes, as highlighted by the Organization for Economic Cooperation and Development. 

According to the World Economic Forum, Saudi Arabia allocated over $50 billion in 2023 to initiatives, including digital health services aimed at improving efficiency and accessibility.  

McKinsey predicts that the widespread adoption of digital solutions could bring an additional $15 billion to $27 billion in economic benefits by 2030. 

Saudi Arabia’s partnership with Orion Health to create the world’s largest health information exchange, connecting 5,000 institutions and 32 million people, is one example of such efforts. 

Artificial Intelligence, especially generative AI, is expected to play a significant role in improving patient care and healthcare efficiency, with the potential to contribute $320 billion to the Middle East’s economy by 2030, according to the WEF.  

Robots are also being explored for improving precision, workplace safety, and elderly care. Saudi Arabia, for instance, saw a 52 percent increase in robotics company registrations between 2022 and 2023. 

As Saudi Arabia continues to focus on digital health, AI advancements, and comprehensive care models, its efforts are poised to transform the sector, improve health outcomes, and support the well-being of its growing population.  


Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments

Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments
Updated 08 January 2025
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Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments

Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments

RIYADH: The Hafr Al-Batin Investment Forum 2025, held in Saudi Arabia’s Eastern Province, concluded with the signing of seven agreements totaling SR17 billion ($4.5 billion) across key sectors, underscoring the region’s growing economic potential.

The event, organized by the Hafr Al-Batin Chamber of Commerce in collaboration with the Federation of Saudi Chambers and hosted at the University of Hafr Al-Batin, aimed to position the province as a competitive hub for both local and international investors, in alignment with Saudi Arabia’s Vision 2030.

The forum was inaugurated by Eastern Province Gov. Prince Saud bin Nayef Al-Saud, who emphasized the province’s strategic advantages for investors.

He highlighted Hafr Al-Batin’s competitive investment landscape, noting its diversified economic opportunities and advantageous location, making it an ideal destination for investors looking to capitalize on sustainable growth prospects.

He also underscored the region’s infrastructure developments, which are critical for attracting investment and creating job opportunities for Saudi nationals.

The agreements signed during the forum marked a significant milestone in Hafr Al-Batin’s economic development, with the forum serving as an important platform for showcasing the region’s investment opportunities.

These agreements are expected to contribute to the province’s growing role in the Kingdom’s economic agenda, aligning with Vision 2030’s objectives of economic diversification and job creation. The event also highlighted Hafr Al-Batin’s efforts to attract foreign capital and foster local content within its industries.

In conjunction with the forum, the Eastern Province Development Authority launched a master plan for Hafr Al-Batin aimed at attracting SR47 billion in private sector investments. This plan is projected to contribute SR11 billion to Saudi Arabia’s gross domestic product and create more than 60,000 job opportunities for local residents.

One of the key announcements at the forum was the unveiling of the Middle East’s largest livestock city, a SR9 billion project designed to support Saudi Arabia’s goals of achieving self-sufficiency in livestock production and enhancing food security.

The city, backed by the Hafr Al-Batin Livestock and Marketing Association, will be developed on an expansive 11 million sq. meter site. Once operational, the project is expected to meet 30 percent of Saudi Arabia’s demand for red meat while generating over 13,000 jobs.

It will include state-of-the-art livestock farms, fodder production plants, a veterinary hospital, and advanced meat processing facilities. Sustainability will be a core feature, with the city powered by renewable energy, generating 15 billion kilowatt-hours of green electricity annually, producing 140,000 liters of milk per day, and 100 tonnes of fodder per hour. The facility will also feature an automated abattoir spanning 170,000 sq. meters, contributing 1.5 million sq. meters of leather production each year.

The forum drew a wide range of participants, including Prince Abdulrahman bin Abdullah bin Faisal, governor of Hafr Al-Batin, as well as high-ranking officials, business leaders, and investors from across the globe. The event was designed to showcase the province’s investment potential in sectors such as agriculture, livestock, healthcare, logistics, and infrastructure—critical areas for the region’s economic transformation.

Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers, emphasized the forum’s importance in advancing the Kingdom’s economic goals.

He pointed to the growth of Saudi Arabia’s trade and commerce ecosystem, driven in large part by Vision 2030’s transformative strategies, and highlighted the role of the Hafr Al-Batin Investment Forum as a vital platform for introducing the region’s opportunities to both national and international investors.

Sulaiman Al-Aqil, chairman of the Hafr Al-Batin Chamber of Commerce, described the forum as a pivotal moment in the province’s economic evolution.

The event featured participation from 24 government and private entities from 12 countries, four panel discussions with 19 speakers, and the release of a comprehensive economic study on Hafr Al-Batin’s investment potential.

With these agreements and initiatives, the forum not only highlighted the region’s expanding role in Saudi Arabia’s economic future but also reaffirmed the Kingdom’s commitment to becoming a leading global investment hub in line with Vision 2030’s objectives.


PIF invests $200m in new Saudi ETF by State Street Global Advisers 

PIF invests $200m in new Saudi ETF by State Street Global Advisers 
Updated 08 January 2025
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PIF invests $200m in new Saudi ETF by State Street Global Advisers 

PIF invests $200m in new Saudi ETF by State Street Global Advisers 

RIYADH: Saudi Arabia’s Public Investment Fund has invested $200 million in the newly launched SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS exchange-traded fund. 

In a press release, State Street Global Advisers, the US-based asset manager behind the ETF, called it the first fixed-income UCITS ETF focused on the Kingdom to launch in Europe.

This move comes as global investors look to capitalize on Saudi Arabia’s growing bond market, supported by economic and infrastructure developments under Vision 2030. 

The ETF launch further underscores PIF’s strategy to enhance international access to Saudi Arabia’s diversified market and attract foreign investment. PIF’s portfolio also includes investments in ETFs listed in Hong Kong, Shanghai, Shenzhen, and Tokyo. 

“PIF’s investment into the first internationally listed fixed-income Saudi ETF further deepens the Saudi market, while attracting investors and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia,” said Yazeed Al-Humied, deputy governor and head of Middle East and North Africe Investments at PIF. 

Undertakings for Collective Investment in Transferable Securities, or UCITS, are EU regulations that establish a standardized framework for investment funds marketed and sold to investors within the economic bloc.

Listed on the London Stock Exchange and Deutsche Börse’s Xetra in Frankfurt, the new fund tracks the J.P. Morgan Saudi Arabia Aggregate Index. This index provides exposure to the Kingdom’s financial instruments, including liquid dollar- and SR-denominated government and quasi-government bonds, as well as sukuk bonds. 

“We are delighted to see such significant early-stage commitment from PIF into the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, a first of its kind in the industry. The creation of this fund sprung from our ambition to provide investors a compelling and innovative opportunity,” said Yie-Hsin Hung, CEO of State Street Global Advisers. 

The ETF is accessible to investors in several European countries, including Austria, Denmark, and Finland, as well as France, Germany, and Italy. It is also available in Luxembourg, the Netherlands, and Norway, as well as Spain, Sweden, and the UK. 

State Street Global Advisers, the asset management business of State Street Corp., has served governments, institutions, and financial advisers for over four decades, managing $4.73 trillion in assets.
 
The SPDR ETF range spans international and domestic asset classes, providing investors with flexible options aligned to diverse strategies. 


Closing Bell: Saudi main index slides to close at 12,088

Closing Bell: Saudi main index slides to close at 12,088
Updated 08 January 2025
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Closing Bell: Saudi main index slides to close at 12,088

Closing Bell: Saudi main index slides to close at 12,088

RIYADH:  Saudi Arabia’s Tadawul All Share Index edged lower on Wednesday, dropping by 24.55 points, or 0.20 percent, to close at 12,088.74. The benchmark index saw a trading turnover of SR7 billion ($1.86 billion), with 127 stocks advancing and 112 declining.

The Kingdom’s parallel market, Nomu, also experienced a slight decline, falling by 32.97 points, or 0.11 percent, to settle at 30,776.15. Of the stocks listed on Nomu, 41 advanced while 42 retreated.

The MSCI Tadawul Index dropped 7.53 points, or 0.50 percent, to close at 1,506.86.

Among the top performers of the day was Nice One Beauty Digital Marketing Co., which made its debut on the main market on Jan. 8. The company’s share price surged by 30 percent, reaching SR45.50.

Other notable gainers included Al-Mawarid Manpower Co., which saw its stock rise 7.82 percent to SR135.20, and Al-Baha Investment and Development Co., which saw its share price climb 6.98 percent.

On the downside, National Co. for Learning and Education recorded the largest drop, falling 4.24 percent to SR185.20. Almoosa Health Co. also saw a decline of 3.84 percent, ending the session at SR140.40, while Alinma Retail REIT Fund Yanbu saw a 3.45 percent drop to SR4.76.

On the announcements front, Nice One Beauty Digital Marketing Co. revealed it is offering 34.65 million shares at SR35 each. SNB Capital is serving as the lead manager for the offering.

United Electronics Co. announced its estimated financial results for the year ending Dec. 31, 2024. The company reported a net profit of SR534.53 million, marking a 36.8 percent increase compared to 2023. The growth was driven by higher revenues and improved gross profits, thanks to a better sales mix and expansion in the consumer finance sector, despite an increase in selling, distribution, and administrative expenses. Extra’s stock ended the day at SR95.60, up 2.13 percent.

United International Holding Co. also posted its financial results for the period ending Dec. 31, 2024. The company recorded a net profit of SR222.38 million, a 4.8 percent increase over the previous year. This growth was attributed to higher credit loss provisions and increased selling, general, and administrative expenses. The company’s shares closed at SR187.80, down 2.60 percent.

Meanwhile, the Kingdom’s Capital Market Authority announced that Rawasi Albina Investment Co. is planning to issue up to SR500 million in debt instruments. The company's stock finished the session at SR4.35, down 1.15 percent.


Saudi Arabia dominates MENA VC landscape, securing $750m in 2024

Saudi Arabia dominates MENA VC landscape, securing $750m in 2024
Updated 08 January 2025
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Saudi Arabia dominates MENA VC landscape, securing $750m in 2024

Saudi Arabia dominates MENA VC landscape, securing $750m in 2024

RIYADH: Saudi Arabia has retained its position as the top destination for venture capital funding in the Middle East and North Africa region, raising $750 million in 2024, according to a new report.  

This marks the second consecutive year the Kingdom has topped the regional VC rankings.  

Data from regional venture platform MAGNiTT showed that Saudi Arabia accounted for 40 percent of the total VC capital deployed in MENA in 2024, with a 16 percent year-on-year increase in deal flow.  

The Kingdom closed 178 deals, the most of any MENA nation, reflecting strong investor confidence and a thriving startup ecosystem. 

The largest deal in the region was secured by Saudi-based e-commerce enablement platform Salla, which raised $130 million. 

The UAE ranked second in regional funding with $613 million raised, while leading in deal volume with 188 transactions and 12 exits.  

Emerging venture markets snapshot  

MENA startups collectively raised $1.9 billion in 2024, reflecting a 29 percent decline compared to 2023.   

Despite the drop, MAGNiTT noted that “funding levels in 2024 were still higher than 2020 levels, prior to the 2021 and 2022 boom years, signaling continued growth in the venture space.”  

The Middle East accounted for $1.5 billion of the funding, spread across 461 deals — a 10 percent annual increase. Total investor participation in the region grew by 14 percent, reaching 392 investors, while exits totaled 24.  

Venture capital performance in emerging venture markets — which include the Middle East, Africa, Southeast Asia, Pakistan, and Turkiye — slowed significantly in 2024.   

Total VC funding in these regions fell by 40 percent, with deal volumes dropping 20 percent compared to 2023. Both metrics also dipped below 2020 levels.  

Southeast Asia led among EVMs with $5.6 billion raised across 564 deals, while Africa recorded the weakest performance, raising $1.07 billion through 294 deals.  

Mega deals and early-stage activity  

Global VC trends, such as reduced late-stage funding, were reflected in EVMs. Mega deals — valued at $100 million or more — declined for the third consecutive year, falling 56 percent compared to 2023.   

The first quarter of 2024 saw the lowest mega deal funding since the fourth quarter of 2019, with late-stage investments hardest hit.  

However, early-stage activity showed resilience. The focus on seed and pre-series A funding increased, with $1 million to $5 million ticket sizes rising by 5 percentage points year on year.  

According to MAGNiTT, this emphasis on early-stage investments is critical for sustaining future deal flow growth.  

Philip Bahoshy, CEO of MAGNiTT, highlighted a potential recovery in the venture market. “In 2024, we witnessed a decline in funding across EVMs driven by reduced late-stage investment activity. However, the positive development is that 2024 also saw a gradual decline in interest rates, both in mature markets like the US and Emerging Markets,” he said.  

“We anticipate these rate cuts to begin boosting capital availability within the next 6-9 months, paving the way for a stronger funding environment in 2025,” Bahoshy added.  

The Middle East increased its share of deal transactions across EVMs to 35 percent in 2024, an 8-percentage-point rise.   

Southeast Asia captured the largest share at 43 percent, while Africa’s share dropped to its lowest level in five years, at 22 percent. 


UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
Updated 08 January 2025
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UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
  • Value-accretive transaction expected to boost earnings per share by at least 20% in 2025 compared to 2024
  • Transaction adds modern fleet of 32 tankers to ADNOC L&S’ fleet and expands its service portfolio

RIYADH: UAE’s ADNOC Logistics and Services has boosted its global position by acquiring an 80 percent stake in Navig8 TopCo. Holdings Inc. for $1.04 billion, strengthening its status as a prominent player in energy maritime transportation. 

The transaction includes a contractual commitment to acquire the remaining 20 percent by mid-2027, positioning ADNOC L&S for expanded global operations and increased shareholder value. 

Navig8, a prominent international shipping pool operator and commercial management company, brings a modern-owned fleet of 32 tankers and an established presence in 15 cities across five continents. 

The firm has investments in technical management services, is a marine fuels provider operating in over 1,000 ports globally, and has additional ventures within the marine sector. 

 

“The completion of this landmark acquisition is a significant milestone in our transformational growth strategy,” said Abdulkareem Al-Masabi, CEO of ADNOC L&S. 

“By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” Al-Masabi added.

The acquisition aligns with ADNOC L&S’ growth strategy, complementing its integration with Zakher Marine International in 2022 and reinforcing its ambition to expand its global reach and service portfolio. 

ZMI, an Abu Dhabi-based owner and operator of offshore support vessels, brought with it the world’s largest fleet of self-propelled jack-up barges. 

ZMI’s acquisition expanded ADNOC L&S’s fleet to over 300 vessels, reinforcing its position as the region’s largest integrated logistics provider and enabling the company to offer its customers a broader range of services. 

ADNOC L&S, a subsidiary of Abu Dhabi National Oil Co., will benefit from Navig8’s acquisition through expanded services, including commercial pooling, bunkering, technical management, and environmental, social, and governance-focused industrial and digital solutions. 

The acquisition is structured to ensure economic ownership of Navig8 starting from Jan. 1, 2024. 

The remaining 20 percent will be acquired in 2027 for deferred consideration ranging from $335 million to $450 million, depending on earnings before interest, taxes, depreciation, and amortization performance during the interim. 

Nicolas Busch, CEO of Navig8, expressed enthusiasm for the deal, saying: “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase.” 

The acquisition is expected to deliver immediate financial benefits, with ADNOC L&S projecting a 20 percent increase in earnings per share by this year compared to the previous year. 

The company’s share price saw a 5.23 percent increase as of Jan. 8, 1:00 p.m. Saudi time.

It anticipates annual synergies of at least $20 million by 2026, underscoring the value-accretive nature of the transaction.